The Virgin-backed online pharmacy services provider was valued above $1bn in a round that boosted its overall funding to $570m.

Capsule, a US-based online pharmacy platform operator backed by conglomerate Virgin Group, has secured $300m of funding at a valuation of over $1bn, Fierce Healthcare has reported.

Private equity firm Durable Capital Partners led the round, which included investment managers Baillie Gifford, T Rowe Price and Whale Rock Capital Management.

Founded in 2015, Capsule provides an online pharmacy service that lets customers order prescription medication through a mobile app for delivery to their homes.

The company will use the proceeds from the round to enter new markets and further develop its technology. It is also planning to expand its offering to include telemedicine and mental health services.

Eric Kinariwala, Capsule’s founder and CEO, said in a statement quoted by Fierce Healthcare: “Capsule’s long-term ambition is to create a single place where consumers can access all of their healthcare needs in a single, simple, holistic place.

“We are doing that in a way that brings everybody in healthcare together versus trying to own all of those things ourselves.”

Capsule has now raised $570m of funding to date, including a $200m round in September 2019 that was led by venture capital firm TCV and which also featured venture capital firm Thrive Capital and growth equity firm Glade Brook Capital Partners.

Thrive Capital and Glade Brook had prevoiusly led Capsule’s $50m series B round in 2018, taking part alongside unnamed existing investors. It had received $20m in a 2017 series A round that was also led by Thrive Capital and backed by Virgin Group and VC firm Sound Ventures.

Image courtesy of Capsule.